The Commission reported to the Department of Sustainability, Environment, Water, Population and Communities portfolio, and provided independent, evidence-based advice to the Council of Australian Governments (COAG) and the Australian Government on national water issues.

Under the amended Act, the Commission had three core ongoing functions: monitoring, audit, and assessment.

It was also empowered to undertake broader activities that promoted national water reform objectives.

[5] The Commission published biennial assessments of progress in implementation of the National Water Initiative.

The 2011 assessment made 12 major recommendations to COAG to reinvigorate the water reform agenda and fully deliver its economic, environmental and social benefits.